On Wednesday, in a statement Adecco Group said, it has agreed to acquire AKKA Technologies for $2.4 billion (2 billion euros) and merge it with its own Modis tech brand.
The acquisition’s synergy stems from the fact that AKKA’s its professional staffing line has higher margins which are less sensitive to economic cycles, compared to its general staffing business.
“We are very pleased to announce today that AKKA Technologies and Modis will come together in a landmark transaction,” said Adecco Group CEO Alain Dehaze in a statement.
Adecco, a Swiss company, which competes with Randstad as the world’s largest provider of temporary staffing, said the merger with the science and IT staffing business Modis would create the second largest player in the sector – with 50,000 workers on their books.
It went on to add, the deal will fruition after three years from completing the acquisition and will add to Adecco’s margins and earnings per share.
The acquisition, subject to regulatory approval, is expected to close in the first half of 2022.
In 2020, AKKA reported revenues of 1.5 billion euros and an operating loss of 170.5 million euros as it was hit hard by the COVID-19 crisis.
($1 = 0.8460 euros)